Rebalancing compares current holdings with a target allocation you have already chosen. The worksheet calculates target currency values and differences; it does not recommend an asset mix.
Make weights total 100 percent
List asset names, current values and target percentages. Use one valuation date and currency. Include cash if it is part of the allocation. Do not mix original purchase cost for one holding with current market value for another.
Treat new cash explicitly
New cash is added to total portfolio value before calculating targets. Positive differences are modeled purchases and negative differences are modeled sales. New cash can reduce selling but does not necessarily eliminate every sale. Rounding to currency cents can leave a small difference.
Review before trading
The worksheet excludes taxes, transaction fees, spreads, minimum trades and account restrictions. It also does not change your target because a market moved. Save the CSV as a review document and compare its arithmetic with your investment plan and actual account constraints.
Worked example
Scroll the table horizontally on small screens to see every column.
| Asset | Current | Target | Difference |
|---|---|---|---|
| Stocks | 7,000 | 60% = 6,000 | −1,000 |
| Bonds | 3,000 | 40% = 4,000 | +1,000 |
Differences are before costs and taxes; they are not instructions to place trades.
Sources and checks
Examples are illustrative and can be checked with the linked tools. Read each tool’s assumptions before applying its result. How we verify methods.